Reiss founder will keep minority stake in deal that values fashion retailer at $328 million

Warburg Pincus LLC, a New York-based private-equity firm with more than $40 billion under management, said it has agreed to buy a majority stake in Reiss Holdings, valuing the British fashion retailer at £230 million ($328 million).

Reiss was founded in 1971 by David Reiss, who will keep a minority stake in the business and stay on as chairman and chief executive, Warburg Pincus said in a statement. Reiss operates in 160 locations...